Profit taking Jan 2020...... Recalibrating risks

Woke up one morning, I was shocked to read about the US killing Iran's top general on Iraq soil. Few days later, Iran started firing ballistic missiles into US Green zone in Iraq. Those event unfold so quickly that it really shook my confidents in the recently bull run. Looking at my portfolio, I was almost fully vested in the market. My huge positions in the market during this "brink of war" posed a risk that I'm not ready to stomach at this moment.

So I decided to sell some counters to rebalance my portfolio. I thought maybe raising cash and wait for better entry moment was a wise choice to make, however the stock market did not yield to the world events. It recovered very quickly when Trump announced no casualty and calm the market.

Keppel. Bought at $5.84 lowest, sold at $6.80.

OCBC. Bought recently at $10.95, sold at $10.95.

Sembcorp. Bought at $2.21, sold at $2.29.

Lam Research. Sold 50% at $294. Cost price at $271.

Alibaba. Sold 10% at $213. Cost price at $172.

At the end of the portfolio rebalancing, my cash holding increased from 5% to 16% in 10 days. Total profit from my completed trade was $13,860.

It may seem like a wrong move to take profit so quickly as the market recovered. It having a very strong start of the year. But I felt too exposed to the tension in Middle East. Raising some cash to manage my risk. I still have about 10 counters in my portfolio, I want to see how far they can run in this bull market before deciding on my next move. Not planning any more trade at the moment. Ciao!

-WILLIAM CHENG

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